Why I am quitting with Polycub, Cub, and other DeFi2.0

avatar of @pele23
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2 min read

Not my cup of tea

Polycub, Cub, xPolycub, DeFi2.0,... These are terms that have been slammed around my head the last few months here on Hive, and I thought, I need to give this a try, the returns just seemed too good to miss out on it. But now, after one month and a half of Polycub, and farming in a liquidity pool on Polycub, and after more than a year of being in a Den at Cubdefi, I am quitting the shizzle. And I feel good with it. Let me elaborate on it.


Ponzi or not?

I am not going to say that these kind of Decentralized Financial instruments are Ponzi schemes, because I just don't get the mathematics behind it, it is just too technical for me, to truly understand, so saying it is a Ponzi scheme would be just not fair. But, and that is a real but, it truly feels like a Ponzi to me. You get lured in with incredible yields at the time that the main token (in the case of Polycub) is at great prices. At the beginning I was getting a farming yield of over 2000 %, and the price of Polycub was above 1 USD. So, that was awesome. But that changed so quickly. Right now, my farm is yielding me around 31 %, and Polycub isn't even worth 0.3 USD.
I can't help saying it, but I feel a bit scammed. Not that I lost money, but the returns really aren't what they promised to be. And there is still the risk of impermanent loss.

So I decided to drop out of the liquidity pools, and use my Leo for delegation to Leofinance itself. That yields me 16 %, which is certain, and I don't have the risk of impermanent loss. The rest I will convert to Hive Power and HBD, which give me curation and 20 % interest. And those mathematics I truly understand. As I wise man once told me, stay away from things you don't understand, well, I should have listened to him. And have stayed away from it.


Do Your Own Research, that is the key here, I did my research, and I just don't get how it works. If you do get it, well feel free do invest in it. Good for you, and if the returns are great, even better. But for me, it just doesn't feel good...



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